Goldman Sachs Comments on Waters Corporation

Goldman Sachs has published a research report on the Waters Corporation WAT. In the report, Goldman Sachs wrote, "WAT's 2Q miss was driven by a combination of end of quarter slippage among pharma customers, delayed spending decisions ahead of new product launches (Synapt G2S and I- lass), and academic funding pressure. After speaking with WAT management, we believe the first two issues will ultimately prove to be transient in nature. First, the outlook for the H-class product cycle remains robust as the late 2Q spending holdups in pharma (roughly $5 mn) were largely resolved in early July. Second, new products (Synapt G2S and I-class) have been well received and should drive a reacceleration in WAT's R&D focused end markets during 2H2011. As a result, we think 3Q guidance of 9% organic growth implies a conservative sequential outlook. We also anticipate improved operating leverage as SG&A expense growth decelerates in 2H2011." Goldman Sachs rated Waters Corporation a BUY with a price target of $105.00. Waters Corporation closed Tuesday at $89.25.